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US Treasury rates increased after substantial swings this week, and the curve became significantly less inverted as economic data continued to reflect a resilient consumer and labor market strength. Retail Sales rose 0.7% in September after an upward revision to 0.8% in August, exceeding the consensus forecast. Control Group Sales, which are used to calculate gross domestic product and exclude food services, auto dealers, building materials stores and gasoline stations, rebounded 0.6% and reflected broad increases across sectors.

The US Treasury market rallied this week in a flight to quality move that resulted from the tragic events in the Middle East along with comments from Federal Reserve Open Market Committee (FOMC) members indicating that monetary policy is sufficiently restrictive, therefore they might be done raising short-term interest rates for now.